Hong Kong-listed Emperor Entertainment Hotel Limited has issued a profit warning on expected losses of around HK$165 million (US$21 million) for the six months to 30 September 2022, largely due to business expenses and poor performance at its former Macau casino, Grand Emperor.
As previously reported by Inside Asian Gaming, Emperor E announced in April that it would cease casino operations at Grand Emperor from 26 June, citing a challenging business environment due to COVID-19 and a gloomy outlook for the VIP gaming sector. It was later revealed that Macau concessionaire SJM Resorts would take over running the casino until the end of the year, with Emperor E continuing to control the hotel, catering and other non-gaming services.
In issuing its profit warning on Friday, Emperor E said its 1H22 loss was “mainly because the Group had not ceased the gaming operation [at Grand Emperor] yet during the period and the tough operating environment had resulted in a loss of the business.”
It also cited severance payments and other one-off expenses related to the cessation of its gaming business, plus a fair value loss of the Group’s investment properties.
The 1H22 loss is not expected to exceed HK$165 million, the company added. The final interim results are due to be published in late November.
Aside from non-gaming at Grand Emperor, Emperor E owns the Inn Hotel Macau and acquired another hotel and two blocks of serviced apartments in Hong Kong in 2021.
